Power of attorney beneficial for many

Q: I’ve been meaning to get my will updated and I was thinking about getting a power of attorney, too. What are the salient points I need to know about them? Tracey in Victoria A: Do you have arrangements in place for someone to handle your financial affairs if you become sick or incapacitated? Have you left clear instructions regarding the type of medical care you want if you can’t make your wishes known?

These two important areas of financial and personal planning shouldn’t be overlooked. While they may seem trivial when you are healthy, an illness or accident can put your financial and personal life in a state of disarray.

Power of attorney is your best defence. It is a legal document that allows a person or institution you choose to manage your affairs when you can’t. (In B.C., it’s known as a representation agreement.)

Power of attorney for property allows someone to manage your financial affairs. This can include anything from banking and expenses to looking after investments. You can appoint your spouse, a family member, a trusted friend, legal representative or a financial institution such as a trust company. You can assign general power for all your financial affairs, or restricted power giving responsibility for a narrow range of your finances — for example, investments only.

Power of attorney for personal care gives someone the right to make medical decisions on your behalf. Depending on where you live in Canada, this may also be known as a ‘health care directive’ or ‘living will.’

When you are incapacitated by illness or injury, you won’t be able to direct your own care — particularly when near death.

This could result in treatment you don’t want, such as being kept on life support with no possibility of recovery. A power of attorney for personal care will make your wishes known and assign somebody the legal right to ensure they are carried out.

This type of power of attorney also relieves family members of the pressure of making decisions on medical treatment and prolongation of your life.